Two giant distribution groups Barloworld and Munich-based BayWa,have plans to put up a joint venture for the supply of agricultural equipment into sub-Saharan Africa, NaijaAgroNet reports.
Barloworld, a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions, and BayWawhich offers machinery and equipment for farming and forestry, yard and barn and for local authorities, are establishing a joint venture, in which every one of the partners will embrace an equal 50 per cent shareholding.
Though the approval of the establishment is still a topic to the competition authorities but, the associates anticipate commencing operations at the middle of this year in Zambia by offering consulting, sales and services, including for the Allis-Gleaner Company (Agco) brands Challenger and Massey-Ferguson.
Clearing up the reasons for the establishment of the combined venture, Barloworld chief executive, Clive Thomson said yesterday that agriculture in Africa offers vital growth opportunities to those able to offer solutions.
“It is estimated that the continent has more than 60 percent of the world’s uncultivated arable land required to feed 9 billion people globally by 2050 so Barloworld’s understanding of local mechanisation requirements, combined with our strong focus on after sales infrastructure and service, makes expansion beyond southern Africa a natural progression and together with BayWa we look forward to building on shared competencies to provide region-specific resources and solutions to the agriculture value chain in Africa,” he said.